There may be some modification in the tax incentive structure, to make RGESS more attractive to retail investors.

MUMBAI: LIC Nomura Mutual Fund Chief Executive and Director Nilesh Sathe feels that in Budget 2013-14, government might come up with measures like simplification of KYC (know your customer) norms, along with some modification in the tax incentive structure, to make Rajiv Gandhi Equity Savings Scheme more attractive to the retail investors.

Currently, fund managers are of the opinion that the procedure for retail investors needs to be simplified to attract first time investors into the market.

LIC Nomura MF is an alliance between insurance major LIC and Japanese Nomura with LIC holding 65 per cent stake in the joint venture.

The RGESS, which was opened for subscription from February 9, will close on February 25. RGESS was announced by government in the last Budget to encourage retail investors to participate in capital markets.

Under the scheme, an investor having an annual income under Rs 10 lakh, will get a tax benefit upto Rs 50,000 per year if he is new to capital market.